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Tuesday, December 11, 2012

Las Vegas Man Sentenced to 37 Months in Prison for Foreclosure Rescue Scam and Theft of Government Funds

WASHINGTON – A Las Vegas man was sentenced today to 37 months in prison
for operating a foreclosure rescue scam that defrauded distressed
homeowners who were struggling to pay their mortgages, announced
Assistant Attorney General Lanny A. Breuer of the Justice Department’s
Criminal Division and U.S. Attorney Daniel G. Bogden of the District of
Nevada.

Alex P. Soria, 65, was sentenced today by U.S. District Judge Lloyd D.
George in the District of Nevada. In addition to his prison term, Soria
was sentenced to serve three years of supervised release and ordered to
pay $320,266 in restitution.

In August 2012, Soria pleaded guilty to one count of wire fraud in
connection with his scheme to defraud distressed homeowners and one
count of theft of government funds for defrauding the Social Security
Disability Insurance benefits program.

According to court documents, Soria identified homeowners whose mortgage
debt exceeded the value of their homes and charged them a fee
purportedly to reduce the principal balance of their mortgages using
money from the Department of the Treasury’s Troubled Asset Relief
Program (TARP). Soria admitted in court that he lied to homeowners
about his affiliation with several mortgage lenders and that he provided
victims with fraudulent letters stating they had been approved for
loans. Soria also admitted he falsely told victims that his loan
program had been successful in the past and charged homeowners for loan
modifications he knew he could not deliver. Court documents show that
Soria concealed from homeowners the fact that the state of Nevada had
issued a cease and desist order which legally prohibited him from
working in the mortgage industry. Soria collected over $100,000 in fees
from distressed homeowners, many of whom lost their homes to
foreclosure after Soria failed to deliver the loan modifications he
promised.

As part of the same case, Soria also admitted to stealing government
funds by continuing to collect Social Security Disability Insurance
benefits while at the same time receiving income from his foreclosure
relief operation. The Social Security Disability Insurance program is a
federal program that replaces the wages of individuals who become
unable to work due to a disability. Soria admitted to collecting over
$200,000 in disability benefits from 1990 to 2010 while at the same time
receiving income that he concealed from the Social Security
Administration.

This case is being prosecuted by Trial Attorneys Brian R. Young and Mary
Ann McCarthy of the Criminal Division’s Fraud Section. The U.S.
Attorney’s Office for the District of Nevada assisted with the
investigation and prosecution. The case was investigated by the Offices
of Inspector General for the Department of Housing and Urban Development
and the Social Security Administration.

This prosecution is part of efforts underway by President Obama’s
Financial Fraud Enforcement Task Force (FFETF), which was created in
November 2009 to wage an aggressive, coordinated and proactive effort to
investigate and prosecute financial crimes. With more than 20 federal
agencies, 94 U.S. attorneys’ offices and state and local partners, it’s
the broadest coalition of law enforcement, investigatory and regulatory
agencies ever assembled to combat fraud. Since its formation, the task
force has made great strides in facilitating increased investigation and
prosecution of financial crimes; enhancing coordination and cooperation
among federal, state and local authorities; addressing discrimination
in the lending and financial markets and conducting outreach to the
public, victims, financial institutions and other organizations. Over
the past three fiscal years, the Justice Department has filed more than
10,000 financial fraud cases against nearly 15,000 defendants, including
more than 2,700 mortgage fraud defendants. For more information on the
task force, visit www.stopfraud.gov.